Getting your finances in order this year

Getting your finances in order can often feel like an uphill battle. With a sprinkle of optimism and the right tools, you can take control of your money this year.

Let’s dive into how you can use our free budget calculator to get 2025 off to a strong start.

Why budget?

In today’s world, budgeting is more important than ever. With the rising cost of living, a solid budget can help you manage your finances and save money, as well as take the first steps towards tackling any problem debt.

Ask yourself:

• Do I spend more than I earn? Tracking your spending helps you work out where to make savings and spot any areas to work on.

• What can I afford to spend? Understanding your cash flow allows you to prioritise spending and save for future goals.

Sticking to a budget can relieve money worries and pave the way to a brighter financial future.

Give yourself time

Make sure you’ve got enough time to sit down and go through everything properly. You don’t want to rush this or make any mistakes.

Gather your financial documents

Gather all your bank statements, household bills and receipts.

Don’t be tempted to guess or estimate your spending – accuracy is key to a successful budget.

Be accurate with your figures

It can be tempting to underestimate your expenses, but it’s best to be honest.

If you really must guess, go larger rather than smaller so you don’t come up short.

Don’t list any expenses twice – if you’ve already included a payment in one section, don’t put it in a second one.

Decide who your budget covers

Is your budget just for you, or do you need to include your partner or family?

If your finances overlap – e.g. joint payments – sit down and budget together.

Don’t forget about one-off expenses

We all have those one-off expenses that can throw a spanner in the works.

Make sure any emergencies are taken into consideration by spreading the cost over the year, e.g. if a new washer will cost you £300, that’s £25 a month.

What your result means

If you find yourself in the red, it might be time to see how we can support you.

All our advice is free and impartial and we can:

• give you a helping hand with your budget
• see if you’re getting everything you’re entitled to
• offer free debt advice online or over the phone
• provide info about debt solutions (some are free, others have a fee)